In another example of the economic slowdown taking its toll, Aviva Life Insurance has laid off more than 150 people as part of its restructuring exercise to bring down costs, according to company sources.
However, Aviva’s official spokesperson said that only 80 people had been laid off.
“To simplify our organisational model and make it more efficient, we have rightsized management layers to make the organisation more nimble and agile,” said the spokesperson.
India’s private life insurance industry witnessed a decline in fresh policy sales since September 2010 with companies deciding against launching and selling unit-linked pension products.
Such unit-linked products constituted 30% of the total premium collection in 2009-10. According to an industry source, the industry’s attrition rate has also increased significantly.
Finance minister P Chidambaram has said the government would take all steps to ensure that the industry regains its growth momentum.
Insurance majors are looking to rope in joint venture partners to enhance their distribution network and boost finances in this cash-starved sector.